A high level of capacity in the market has caused property insurance rates to increase less than expected at July 1 renewals, despite the effects of 2017's natural catastrophes, according to industry executives. "Even though rate levels have dropped below a sustainable level across the entire global property market, increases are not across the board but rather vary by client," said Gary Love of FM Global.
Areas of Colorado experienced severe weather on Tuesday, with reports of hail damaging vehicles as well as one confirmed tornado and a suspected tornado. The storms also knocked a semi-trailer on its side in Keenesburg, north of Denver.
More than 800 residents affected by the recent eruption of Hawaii's Kilauea volcano are seeking relief from the Federal Emergency Management Agency now that President Donald Trump authorized an unspecified amount of housing aid for the victims.
Everyone who evacuated because of Colorado's 416 Fire has been allowed to return home as of Tuesday, as the remnants of Hurricane Bud have helped crews reach 35% containment of the fire. One town has canceled its July Fourth fireworks displays because of fire risk.
The US Computer Emergency Readiness Team has issued a warning about a newly discovered malware launched by North Korean group Hidden Cobra, also known as Lazarus Group. "These files have the capability to download and install malware, install proxy and Remote-Access Trojans (RATs), connect to command-and-control servers to receive additional instructions, and modify the victim's firewall to allow incoming connections," the US-CERT report notes.
A study by the Union of Concerned Scientists found that "chronic" flooding could be a problem for more than 310,000 US coastal homes by 2045 and nearly 2.4 million by 2100, with $1 trillion in property value at risk. The greatest threat from persistent flooding is in Florida, New York and New Jersey, according to the study.
More than 1,000 lawsuits regarding climate change are currently outstanding worldwide, with governments and big oil companies as targets, Sony Kapoor writes. The plaintiffs in such cases have had few victories, but science linking damage to climate change is improving, and successful lawsuits will set precedents that could translate to more risk and costs for entities that are sued, Kapoor writes.
The National Transportation Safety Board and Tesla are investigating a Model S car that caught fire, which actor Mary McCormack said began while her husband was in traffic in Los Angeles on Friday. Tesla said its initial investigation found that the flames did not affect the car's cabin, and the company said its vehicles are 10 times less likely to catch fire than vehicles that run on gasoline.
A J.D. Power study found that auto insurers' customer satisfaction score rose to a record high 826 out of 1,000, while shopping rates for auto coverage are at a record low. Customers want a combination of digital and offline channels of communication, although "the increasing demand and use of digital self-service options is putting pressure on agents to evolve their value proposition to offer more products and services to help customers with complex needs and risks," said Robert Lajdziak of J.D. Power.
The potential absence of a loss event this year poses the risk that January's reinsurance pricing gains could be wiped out, say Deutsche Bank analysts, who describe the outlook for the sector's pricing as "very bleak." The reinsurance market could soften in 2019, the analysts say, and reinsurers are focusing on underwriting more non-US catastrophe risks.